CHICAGO, Sept. 27, 2018 /PRNewswire/ -- Keller Lenkner LLC ("Keller Lenkner") today further updates investors on its previously announced securities fraud class action filed against Tesla, Inc. ("Tesla") and its Chairman and Chief Executive Officer, Elon Musk ("Musk"), discusses the lawsuit filed today against Musk by the U.S. Securities and Exchange Commission (the "SEC"), and discusses the proposed expanded class period for shareholders to recover their losses.
Notably, Keller Lenkner was the first law firm to file suit against Tesla and Musk for their false and misleading statements regarding taking the Company private. Keller Lenkner has been vigorously continuing their investigation, which includes conversations with large shareholders, and further analyses of the facts and the law.
The complaint filed by Keller Lenkner charges that Musk and Tesla violated the Securities Exchange Act of 1934 by issuing false and misleading statements regarding taking Tesla private. In particular, at 12:48 p.m. Eastern Daylight Time on August 7, 2018, Musk issued a statement via Twitter that "funding" for the deal had been "secured." But Musk was not telling the truth. Rather, he had Tweeted to decimate the Company's short-sellers, who were forced to cover their positions over the succeeding days at artificially inflated prices.
Importantly, vindicating, and building upon the action first filed by Keller Lenkner, the SEC today brought a lawsuit against Elon Musk alleging that he violated the federal securities laws by virtue of his August 7th Tweets. The SEC demonstrated that Musk did not have "funding secured" when he issued his Tweets, and, also, revealed for the first time, that Tesla's investment relations department was validating Musk's Tweets, including telling an investment bank research analyst that "[I assume] that given we went full-on public with this, the offer is as firm as it gets."
Lawsuits filed after Keller Lenkner's initial action have proposed expanding the class period. Thus, if you purchased Tesla securities from August 7th, 2018, through and including August 17th, 2018, you may be entitled to recover your losses. Importantly, Tesla stock closed at $305.50 on August 17th, 2018 (a decline of approximately $82 from its intra-day high after Musk Tweeted on August 7th). Tesla's stock price has still not recovered from Musk's Tweets, trading after hours on September 27th, 2018 as low as $270.00 per share.
Defendants Musk and Tesla have not yet apologized for their activities that led to the sharp decline in the price of Tesla's securities following the August 7th Tweets. Indeed, demonstrating the falsity of the August 7th Tweets, on or about August 24th, 2018, Defendant Musk announced that he was no longer seeking to take the Company private. Of course, as alleged in the complaint, he never was actually considering taking the Company private. And he never had "Funding Secured" for the deal; rather, as alleged in Keller Lenkner's complaint, Musk unleashed the materially false and misleading Tweets as a nuclear attack on Tesla's short-sellers.
Keller Lenkner's dedicated Tesla litigation website – www.teslatweets.com – contains more information about the lawsuit and provides large Tesla investors an easy way to contact Keller Lenkner to discuss their rights.
The action filed by Keller Lenkner is in the Northern District of California and is captioned Kalman Isaacs v. Elon Musk, et al., No. 3:18-cv-04865.
The plaintiff is represented by Keller Lenkner. For more information about this action, or to discuss your rights or interests as someone harmed by the false and misleading statements, please visit www.teslatweets.com.
About Keller Lenkner LLC: Keller Lenkner LLC pursues high-stakes litigation for plaintiffs across a variety of claims and practice areas. Its lawyers are uniquely situated at the intersection of law and finance, with experience that includes litigating in courts throughout the country as well as co-founding the world's largest private litigation finance firm. www.kellerlenkner.com
Media Contact: Travis Lenkner, Managing Partner, Keller Lenkner LLC, (312) 741-5223, [email protected]
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SOURCE Keller Lenkner LLC